Grayslake data center approval sparks growing controversy
Despite receiving land use approvals, a T5 Data Centers project in Grayslake, Illinois, is facing significant local opposition due to concerns over its size, water usage, and electricity consumption. A Lake County Board resolution proposes a temporary moratorium on data centers in unincorporated areas, and an opposition group has threatened litigation to halt the Grayslake project. The project is currently in the permit process with initial operations slated for late 2027.
The T5@Chicago IV data center campus in Grayslake, Illinois, developed by Atlanta-based T5 Data Centers, is progressing through its permit process despite growing local controversy. While the village of Grayslake has granted all necessary land use approvals for the facility, which is slated for initial operations in late 2027 and could encompass over 400 acres with 20 buildings, the project faces significant public scrutiny. Grayslake's Deputy Village Manager, Chase Muscato, highlighted the project's potential to generate over $1 billion in property tax revenue for local districts over 20 years.
However, residents and local officials, including Lake County Board member John Wasik, have raised concerns about the data center's immense size and its implications for water usage and electricity diversion. A contentious Village Board meeting in May saw public comment amidst "misinformation and inflammatory comments" on social media. Avon Township Supervisor Michele Baumann expressed regret that her board hadn't had the opportunity to discuss the project with Grayslake officials. Critics, like Alefiya Presswala of Project Censored, have pointed to the substantial water demands of AI data centers, noting that a hyperscale facility can consume up to 1.8 billion gallons annually, comparable to a small town. The North Shore Water Reclamation district, which would handle the facility's effluent water, stated it anticipates no issues.
Electricity concerns, specifically potential grid strain and power diversion, are being addressed between T5 Data Centers and Exelon Corp., which owns ComEd. The project's location was pre-identified by ComEd due to its proximity to major substations. In response to the broader concerns, the Lake County Board recently passed a resolution initiating a public hearing for a proposed temporary moratorium on data centers in unincorporated areas of the county, though this would not affect the Grayslake municipal project.
Furthermore, the "Lake County Data Center Opposition Coalition" has announced its intention to pursue litigation to halt the Grayslake project, although no formal legal filings have been made to date. Grayslake officials maintain they have received no formal pushback from neighboring municipalities and that the project is expected to be multi-year.